CCSD facilities staff outline change‑order reductions, describe multilayered approval process

Brandon McLaughlin, CCSD chief facilities officer, told the Board of Trustees on Aug. 6 that the district has reduced change orders on construction projects and uses multilayered controls to review requests.

"Changes are a very routine and often necessary part of all construction projects," McLaughlin said, summarizing a presentation that included historical percentages for change orders and explanations of why they vary by delivery method. McLaughlin said new‑construction change orders were about 6.38% of contract value for projects in the capital improvement program covering fiscal years 1999–2015, 4.66% for fiscal years 2016–2020, and 1.44% for fiscal years 2021–2025. He said similar reductions appear on modernization work (6.81% → 3.38% → 1.85%).

The presentation identified two main reasons those percentages have fallen: increased use of collaborative delivery methods (construction manager at risk and design‑build), which bring contractors into design earlier, and the routine use of contract allowances to cover "known unknowns." McLaughlin cautioned that past reports may have been coded differently and that allowances can make direct historical comparisons difficult.

Interim Director Josh Chesnick walked trustees through the district's step‑by‑step process for contractor change order requests. Under that workflow, a contractor submits a change order request (COR); the architect‑engineer (A/E) reviews it and may reject it, accept it, or ask for more information; then the CCSD project manager and a series of internal reviewers (coordinator, director, chief facilities) review and approve. If a signed authorization is required, the item is bundled for board consideration and the clerk prepares the summary sheet for the Board.

Chesnick described supporting documentation that accompanies requests: subcontractor proposals, labor‑burden worksheets, invoices, civil drawings when applicable, and engineer justifications. McLaughlin said the Facilities Bond Fund financial management team and internal audit review projects after the fact and that district staff have engaged financial auditors at the application‑for‑payment stage for certain contract types.

McLaughlin cited District Policy 72.10 as the rule requiring presentation to the trustees when cumulative change orders exceed specified thresholds: more than 3% of original contract value for new construction and more than 5% for modernization projects. He noted the policy dates back decades and was last updated in 2019.

Trustees asked about external oversight and audit. McLaughlin said the A/E acts as an industry “initial decision maker” on claims; CCSD internal audit reviews most projects; and the facilities financial team and outside financial auditors are inserted into the payment process where appropriate to verify costs.

Trustees praised the low percentages but cautioned that very low rates can also trigger questions. Trustee Baron said industry norms run about 2–5% and that CCSD's results are in a favorable range. Several trustees pressed staff on how the district pursues cost‑avoidance and “workarounds”; McLaughlin said staff intervene at many levels, from on‑site project managers finding efficiencies to pursuing other options when major changes would require substantial new spending.

McLaughlin and Chesnick closed by offering to provide the Board additional historical detail on how allowances were treated in past reports and by answering follow‑up questions as staff refine reporting.

Ending: Trustees did not take formal action on the presentation; the briefing was received for information and trustees directed staff to provide additional historical breakdowns and to follow up on external benchmarking if available.